The last few years have been marked by a relatively stagnant housing market with prices generally flat in the midlands and north, Scotland, Wales and Northern Ireland while prices have increased in the south east. However, high levels for deposits has meant that first time buyers have found it almost impossible to enter the housing market without saving for many years or seeking the support of the 'bank of mum and dad'.
In order to promote growth in the housing market the Government has announced that it will:
- Introduce a new build indemnity scheme to increase the supply of affordable mortgage finance for new build homes. This scheme will enable home buyers to purchase new build houses and flats with a five per cent deposit. It is envisaged that this will assist up to 100,000 families
- Reinvigorate the 'Right to Buy' to support social tenants who aspire to own their own home. The Government will provide an additional affordable home for each one purchased, in addition to plans to deliver up to 170,000 affordable homes through the new Affordable Homes Programme
- Launch a £400 million 'Get Britain Building' investment fund, which will support firms in need of development finance
- Support new development, which could include modern garden cities, urban and village extensions.